4-BPM006648_Price Increase_FINAL.pdf
PDF 959 KB Posted
- Attached to
- Master Agreement AZ|CTR076220
- Contract number
- CTR076220
- Issued by
- Arizona
About this file
This document is an Arizona Department of Transportation (ADOT) Price Increase Percentages Attachment, designed for potential contract offerors to specify maximum price increase percentages for contract renewal periods. The document is available online at https://appstate.az.gov/ and is marked with a revision date of 11/2024.
The attachment allows offerors to propose maximum price increases for up to four potential renewal periods, with the stipulation that each increase is calculated against the original contract price. In the example provided, the offeror has proposed incremental increases of 3% for the first renewal period, 6% for the second, 9% for the third, and 10% for the fourth renewal period. ADOT explicitly notes that price increases are not automatically granted and that documentation justifying the need for an increase must be provided at the time of renewal. The document includes a detailed example showing how the percentage increases would be applied to a hypothetical original contract price of $100.00, demonstrating the cumulative effect of compounding increases over multiple renewal periods.
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Text version
ATTACHMENT
PRICE INCREASE PERCENTAGES
Available online at https://appstate.az.gov/
Rev. 11/2024
The offeror should use the space below to identify the maximum price increase percentage that they may want to request at the time of renewal if ADOT exercises its option per the applicable provisions under any resultant contract(s).
1st Renewal Period ___________________% Maximum Increase
2nd Renewal Period ___________________% Maximum Increase
3rd Renewal Period ___________________% Maximum Increase
4th Renewal Period ___________________% Maximum Increase
The offeror is cautioned that each renewal period’s increase percentage shall be computed against the ORIGINAL contract price. If information is not provided in the space above, prices shall remain the same as the original contract term. Please see the following example for further clarification.
Example: If the offeror anticipates requesting a 2% increase at each renewal period per Special Terms and Conditions, they should enter 2%, 4%, 6%, and 8% in the attachment.
Each percentage increase is calculated using the original contract price. See example in table below.
Renewal Period
% Maximum Increase from Attachment
Original Contract
Price
Maximum Increase Allowed
Maximum Contract
Price 1 2% $100.00 $2.00 $102.00 2 4% $100.00 $4.00 $104.00 3 6% $100.00 $6.00 $106.00 4 8% $100.00 $8.00 $108.00
Furthermore, the offeror is advised that the State of Arizona does not automatically grant any increase when renewing the contract. If an increase is requested, documentation of need must be provided at the time of renewal.
| Maximum Increase: 3 |
| Maximum Increase_2: 6 |
| Maximum Increase_3: 9 |
| Maximum Increase_4: 10 |
| Attachment No: 9 |
| Solicitation or Contract followed by #: BPM006648 |
File details come from the government source that posted it. Updated .